rtmark
LearnBonds.com

Bitcoin moves above $12,000 supported by digital currency chatter

bitcoin trading

Bulls are taking over Bitcoin this morning, as the price of the cryptocurrency has risen above its $12,000 psychological resistance on the back of increased support from the US central bank to the potential introduction of a digital currency.

The price of Bitcoin has been lifted 3.6% so far during today’s early cryptocurrency trading activity, currently sitting at $12,346 on above-average volume.

Remarks from the Chairman of the Federal Reserve, Jerome Powell, during a conference with the International Monetary Fund (IMF) on Monday helped lift the price of the cryptocurrency in this past few days, as the head of the US central bank acknowledged the benefits that a central bank digital currency – also known as a CBDS – would have for the economy.

That said, Chairman Powell also clarified that the Fed is still not ready to make a decision on the matter as the institution still has to weigh both the risks and the benefits of introducing this type of currency to the financial system.

“It’s more important for the United States to get it right than to be the first. Getting it right means we not only look at the potential benefits of CBDCs, but also the potential risks, and also recognize the important tradeoffs that have to be thought through carefully”, said Powell.

Bulls have pushed the price of Bitcoin (BTC) higher for 12 out of the last 15 sessions, with the cryptocurrency now approaching a key resistance level at $12,455 – the coin’s 17 August highs.

What’s next for Bitcoin?

bitcoin 1
Bitcoin (BTC) price chart – 1-day candles view with volume, RSI, and MACD – Source: TradingView

Bitcoin bulls have managed to hold the coin’s $10,000 level in the past few weeks after the sharp downward move that followed the cryptocurrency’s 2020 highs.

That kind of support has translated into a double bottom pattern that has helped lift the price of the crypto-asset higher since 24 September, a day in which a big bullish engulfing took place, with the price moving almost $500 higher in a single session.

Meanwhile, Powell comments have added more fuel to the rally as the market was already expecting positive remarks towards digital currencies, while some other news including a report showing that China has conducted a CBDS test with a small group of consumers and a $50 million purchase of Bitcoin from digital payments platform Square  have also helped in pushing the price of cryptocurrencies higher.

Moving forward, Bitcoin bulls have to hold their ground this time if the price moves higher than the $12,455 level as it is highly likely that big players will reap their recent profits in the following sessions, which could end up plunging the price of BTC below that threshold.

In this regard, Simon Peters, an analyst for trading platform eToro, said: “Before investors look to the next bull run, we need to see the price remain above $12,000 for an extended period of time”.

Trusted & Regulated Stock & CFD Brokers

Rating

What we like

  • 0% Fees on Stocks
  • 5000+ Stocks, ETFs and other Markets
  • Accepts Paypal Deposits

Min Deposit

$200

Charge per Trade

Zero Commission

Rating

64 traders signed up today

Visit Now

75% of investors lose money when trading CFDs.

Available Assets

  • Total Number of Stocks & Shares5000+
  • US Stocks
  • German Stocks
  • UK Stocks
  • European
  • ETF Stocks
  • IPO
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 Zero Commission
  • NASDAQ Zero Commission
  • DAX Zero Commission
  • Facebook Zero Commission
  • Alphabet Zero Commission
  • Tesla Zero Commission
  • Apple Zero Commission
  • Microsoft Zero Commission

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
  • Paypall
  • Skrill
  • Neteller

What we like

  • 0% Commission
  • Trade Stocks Via CFDs
  • Authorized & regulated by the FCA

Min Deposit

$100

Charge per Trade

Zero Commission

Rating

Visit Now

76.4% of retail investor accounts lose money when trading CFDs with this provider.

Available Assets

  • Total Number of Stocks & Shares+2000
  • US Stocks
  • German Stocks
  • UK Stocks
  • European
  • ETF Stocks
  • IPO
  • Funds
  • Bonds
  • Options
  • Future
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 Zero Commission
  • NASDAQ Zero Commission
  • Dax Zero Commission
  • Facebook Zero Commission
  • Alphabet Zero Commission
  • Tesla Zero Commission
  • Apple Zero Commission
  • Microsoft Zero Commission

Deposit Method

  • Wire transfer
  • Credit Cards
  • Bank Account
  • Paypal
  • Skrill
Users should remember that all trading carries risks and users should only invest in regulated firms. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Alejandro Arrieche

Alejandro is a financial writer with 7 years of experience in financial management and financial analysis. He writes technical content about economics, finance, investments, and real estate and have also assisted financial businesses in building their digital marketing strategy. His favorite topics are value investing and financial analysis.